The basic life cycle of a trader. Where are you at????
I am at the bottom and will share with everyone the things I have learned from the market and my teacher so that you can avoid losses.
The 3 most important things in Futures that I have realized here are capital and risk management, emotional management, and discipline.
1- capital and risk management, reasonable order placement
-This helps us divide the risk in the market into many parts and not blow the account in a few trades.
For example: if you have $1000, you should have a total volume across all trades of 3000-4000 depending on the market. For example, you will place 2 trades of 1500 which means 100x15 or 150x10, it’s the same. And you should only enter a new trade when you are in profit on the 2 old trades.
- How to choose an entry point that is reasonable and causes less anxiety????
-An important thing when entering a trade and taking profit that I think you should pay attention to is to think about the worst-case scenario of the market and come up with backup plans for it.
- For example, when entering a trade, the worst-case scenario is that the price will continue to drop, so the plan here is to divide the capital into 2 parts, and if the price drops, you can enter DCA to balance the price better. Another note when entering a trade is to check the 1H timeframe of BTC; if it’s red, you should not enter because it is likely to drop further, causing you confusion.
- After entering a trade, you should always set a stop-loss and take profit to avoid risks. Usually, it will be set at +-3%, but if you can buy near the support zone, setting a stop-loss at 2% is also fine (remember to check both the support of BTC and the coin you are buying).